Hala, a pioneering e-hailing service headquartered in Dubai, is embarking on an international growth strategy by entering the Egyptian market through a strategic alliance with MwaslaTech, an Egyptian enterprise specializing in intelligent transportation and communal mobility solutions. The formalization of this partnership has been achieved through the signing of a Memorandum of Understanding (MoU) between the two entities.
As per the terms of the MoU, Hala will investigate potential business avenues within Egypt’s New Administrative Capital (NAC), a modern development to the east of Cairo, as well as in various other urban centers throughout the nation. This initiative represents Hala’s inaugural venture outside the confines of the United Arab Emirates (UAE), with the objective of deploying cutting-edge solutions and leveraging sophisticated technologies to elevate the commuting experience for Egyptian customers.
Since its inception in 2019, Hala has been successfully operating within Dubai and Ras Al Khaimah in the UAE. The company has demonstrated significant growth, as evidenced by a 20% surge in the registration of new users in the first quarter of 2024 when juxtaposed with the corresponding timeframe in the preceding year. Furthermore, since the onset of 2024, Hala has invested in the professional development of its workforce, training upwards of 2,577 Captains (the term used by Hala for its drivers).
The strategic decision to penetrate the Egyptian market is driven by Hala’s aspiration to replicate its UAE success on a larger scale. Egypt presents a fertile ground for ride-hailing services, with market forecasts predicting an increase from $256 million in 2024 to an impressive $527 million by the year 2029.
Khaled Nuseibeh, the Chief Executive Officer of Hala, articulated a sense of accomplishment regarding the company’s maiden expansion beyond the UAE, marking the beginning of Hala’s broader ambitions in the MENAT region, which encompasses the Middle East, North Africa, and Turkey.
Nuseibeh confidently stated, “Our proven track record and the trust we’ve built for dependable service in the UAE positions us to offer top-tier transportation solutions in Egypt. We are wholeheartedly committed to upholding the same exemplary standards of service excellence and innovation that we are known for, as we step into this new market.”
Yasser Sedky, the Chief Executive Officer of MwaslaTech, highlighted the company’s deep-rooted expertise in Egypt’s public transportation arena and their innovative strategy that amalgamates e-hailing with traditional street-hailing practices. MwaslaTech’s proficiency in smart transportation solutions is set to significantly benefit Egyptian commuters, as they bring their knowledge to the partnership with Hala.
In its quest to revolutionize the transportation landscape in Egypt, Hala is keen on forging synergistic relationships with both governmental bodies and private sector entities. The goal is to collectively work towards improving the transit services available to the residents of Cairo, ultimately facilitating a more efficient and seamless commuting experience.
As Hala ventures into the Egyptian market, it is poised to enter a competitive arena already occupied by established players such as Bolt, Uber, and inDrive. Notably, in March 2024, Bolt made a strategic move to capture market share in Cairo by launching an aggressive promotion that included a six-month period offering a 50% discount to riders, coupled with a generous 15% commission waiver for drivers. This competitive landscape underscores the importance of Hala’s strategic partnerships and innovative approach as it seeks to establish a foothold in Egypt’s dynamic ride-hailing economy.
